In early 2024, Amazon Prime Video began including ads within its service, ending the ad-free viewing model. Since 5 February 2024, ads have been part of the basic subscription, with the option to watch without ads available for an additional fee of €2.99 per month.
Before implementing the change, Amazon notified subscribers via an email on January 3, 2024, confirming that “no additional action is required.”
This decision sparked a widespread wave of anger among users, who considered the addition of ads to be a disruption to a paid service they were getting without advertising breaks.
As a result, the Federation of Consumer Protection Organizations in Germany filed an official complaint. The Munich Regional Court ruled that Amazon’s action was illegal.
The court held that the company modified existing subscription contracts without obtaining explicit consent from customers, considering that the introduction of advertising constituted a “fundamental deterioration” in the nature of the original Prime subscription. The judges emphasized that the service’s ad-free status was an essential element of the experience, even if it was not directly promoted in marketing campaigns.
The court also explained that Amazon’s general terms and conditions, although they allow modifications to the content, do not give the company the right to change the basic structure of the service. According to the ruling, moving from an ad-free model to an ad-supported model is a radical change that requires users’ consent.
The court also criticized Amazon’s communication style with its customers, considering that the email sent on January 3, 2024 represented a misleading business practice. It implied that the change would be implemented automatically with no real impact on the user, even though it was a contractual amendment requiring prior acceptance. Accordingly, the court concluded that Amazon violated Germany’s unfair competition law.
Looking ahead, Amazon is not expected to back down from including ads in Prime Video, but the ruling requires it not to use misleading messages in the future, as well as providing a corrective notice to affected customers. At its current stage, the ruling did not impose any immediate obligation to return money to subscribers.
For its part, Amazon commented cautiously on the decision, as a company spokesman stated that they “respect the court’s decision, but disagree with its results.”
. The company confirmed that it informed its customers “clearly, in advance, and in accordance with applicable law” regarding the introduction of advertisements, noting that it is considering taking additional legal steps, including the possibility of appeal, especially since the ruling has not yet become final.
